Amazon Supply Chain Management

Amazon was launched by Jeff Bezos in July 1995. At that time very few realized that in 2016 it would be the world’s largest online marketplace. At the time of launch, it was just an online book store. It is surprising that after 20 years, you are able to buy almost anything from Amazon.

Amazon now sells thousands of products. Some of its products are drop shipped by other merchants and some are created by Amazon itself. Though managing to sell A to Z products through a long list of merchants is not an easy task. The best thing is that Amazon, has managed to satisfy customers at highest level and have been successful in shredding all the competition and getting ahead of all the competitors.

Have you ever thought of why Amazon has been able to win the hearts of their millions of customers? Here, we will discuss the biggest strength of Amazon Supply Chain Management.

What is Amazon Supply Chain Management?

Supply chain is the group of various processes which enables delivery of goods to the customers. It includes planning, controlling and executing measures ensuring satisfying customers as cost-effectively as possible. Amazon’s central focus is on customer satisfaction and thus they have disciplined their supply chain management processes so that their customers get good shopping experience.

Supply Chain Management – Strength of Amazon

Amazon had known that the secret of success is to provide quick and hassle free delivery to the customers. Thus, the company started investing on its shipping process and warehouses. Amazon kept on reducing its shipping time. From 3 days delivery time to same day delivery – they managed to keep their customers happy and win more and more sales day by day.

Now, Amazon has also managed to enter the very competitive grocery market in US and UK regions. They are selling more than 4,000 grocery and household products now. All that is possible only because of their customers’ trust they have won by providing them quick and reliable delivery.

Conclusion

Amazon had understood the consumer behavior towards online shopping very well on an initial stage itself. The company knew that a customer buying from their store requires wide selection, convenience in buying and quick service. The ease of using the interface is very important and so Amazon kept all the online business processes quite simple and easy. So, now it has become very difficult for other online stores to compete with Amazon. As per New York Times, several companies who were planning to plunge into online selling are no more interested in that field as Amazon has become very much powerful. Even Walmart has invested billions of dollars to get ahead of Amazon. Still, Amazon has already achieved its dominant position due to its best Amazon supply chain management process.

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